Goa's capital, Panaji is located on the banks of River Mandovi and is considered to be one of the country's most relaxed cities. Formerly known as Panjim, the city boasts lovely cafes and restaurants, colonial-era buildings, gorgeous churches and a stunning riverside promenade. The narrow by-lanes of the Latin Quarter are a must-visit to get a taste of the city's Portuguese heritage. Among Panaji's most popular sites are Our Lady of Immaculate Conception Church, Adil Shah's Palace, which is Goa's oldest surviving building, Mahalaxmi Temple, Chapel of St Sebastian and Maruti Temple.

The Goa State Museum is also worth a visit as is the Goa State Central Library. 

Legend has it that the name 'Panaji' originates from the corrupted version of 'Ponjy', which means the land that never floods. Panjim was once a small village with creeks, coconut trees and vast fields and the inhabitants were mostly fishermen. It remained so for centuries with the Fort of Adil Shah along River Mandovi being the only recognisable structure. It was in 1632 that a 3.2 km causeway was constructed by the then viceroy, Count de Linhares, Dom Miguel de Noronha, which linked Panjim with Ribandar Village, 50 km from the city. Back then, it was the longest existing bridge. It exists till today and is known as Pointe de Linhares.